Goody's Family Clothing store closing sale agent agreement approved

By Caroline Salls

Pittsburgh, June 11 - Goody's Family Clothing, Inc. obtained court approval of a stalking horse agreement with Hilco Merchant Resources, LLC in connection with store closing sales planned for 69 of the company's stores, according to a Tuesday filing with the U.S. Bankruptcy Court for the District of Delaware.

Under the agreement, Goody's will receive 92.6% of the cost value of merchandise, which is expected to be at least $22 million.

Goody's will pay Hilco a $220,000 break-up fee if it is not the high bidder at the store closing auction.

Competing store closing agent bids were due by 6 p.m. ET on June 11. The auction will be held June 12, and the sale hearing is scheduled for June 13.

Goody's, a Knoxville, Tenn., family apparel retailer operating in small- to midsize markets primarily in the Southeast, filed for bankruptcy on June 9. Its Chapter 11 case number is 08-11133.

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